FFEIC guidelines, fraud forensics and risk-based authentication

During the first half of the year, issues important to Experian and our clients have continued to be at the top of the agenda in Washington, D.C.

In particular, large data breaches at private companies have brought increased scrutiny from both legislators and federal agencies on the issue of data security. We have seen hearings in both the U.S. House and Senate, and a number of members have signaled their intent to introduce legislation later this session that would enhance safeguards for consumer data as well as create a national uniform data breach notification standard. The Obama administration also has been actively involved in data security issues.

In May, the White House released its cybersecurity initiative, which proposed a national data breach notification standard. The initiative also proposed increased responsibilities for certain private companies with operations that, if interrupted, could threaten critical infrastructure that is essential for our nation's security. These include companies that operate transportation and communication networks, handle the electrical grid or are involved in Wall Street trading.

In addition, we have seen a number of legislative proposals put forward to bring the new Consumer Financial Protection Bureau (CFPB) under increased oversight. While the CFPB will assume regulatory and enforcement authority over 18 consumer financial protection laws on July 21, some in Congress have voiced concerns that there is insufficient legislative oversight of the fledgling regulator.

In May, the House Financial Services Committee passed a number of bills that would alter the structure of the CFPB, such as placing it under the direction of a five-member bipartisan commission rather than a single director or increasing the Financial Stability Oversight Commission's ability to overturn CFPB actions. While the legislation will move through the House of Representatives, we don't know yet whether it will be approved by the Senate or signed into law by the president before the CFPB becomes fully operational.